Divorce is trying for everyone involved, but it can become even more complicated if you are dividing a business. After starting and building your own successful medical practice, it can be difficult to consider having to divide the value of your practice, especially if your spouse is not a doctor.
If you started your practice prior to getting married, the court may not view this as a marital asset, and it will likely remain untouched. However, if you started your practice after getting married and/or your spouse supported you through medical school, they may be entitled to more of the practice.
What does the court consider when dividing assets?
During the litigation process of equitable distribution, a judge or expert appraiser values your assets, including your medical practice. The day that you file for divorce is significant because it has an impact on the division of assets. A judge will look at the assets you had prior to the day that you and your spouse file for divorce in order to get a fair look at your finances. Here are a few examples of what the court may check into when determining the value of your assets.
- Marriage length
- Medical practice’s income
- Income of both you and spouse
- Contributions to the medical practice from both parties
It can be concerning to know that a part of your medical practice’s value may go to your soon-to-be former spouse. However, knowing how the process works will make it go smoothly for everyone involved.